Green Building to Spur the Building Automation System Growth in Indonesia | Solidiance | Rudy Setiawan

Rudy Setiawan e

Indonesia, with its incessant construction projects happening especially in the urban areas like Jakarta, is projected to experience a growing adoption of the Building Automation System (BAS). As the streamlined energy efficiency being one of the key differentiations preferred in the building due to environmental urgency, combined with the shrinking available space for new building and the increasing competition between property developers – modernization will likely be more sought after and BAS adoption will be more ubiquitous.

Despite several hindrances behind the low demand in the market compared to its counterparts, Indonesia offers promising opportunities with some particular segment considered as more lucrative than the others. Rudy Setiawan, the Principal at Solidiance who heads up their Indonesia operation, shares with us the building automation system’s market overview in the country and how it can be improved to better face the demand in the coming future.


How do smart buildings which are equipped with advanced Building Automation System (BAS) make a building “green?

Rudy Setiawan (RS) : Building Automation System will make building more intelligent and safe more energy. Therefore directly and indirectly safe the environment and more green than regular building.  Second, BAS will use new technology adoption which consume so much less energy compare to the traditional building technology.

Green building adoption rate in Indonesia is increasing, but being green is not always indicated by the installation of advanced building technology. How is therefore the BAS opportunity in the market?

(RS) : At the moment, the opportunity is rather limited – however, I saw signs that it is growing and getting the acceptance of several key players such as Agung Podomoro and Intiland.  They understand the value proposition of Green Building not only from the economic stand point, but more importantly, from the strategy perspective which gives them key differentiation and therefore competitive advantage in the crowded marketplace.

Which is the most lucrative segment of the building automation system sector in the Indonesian market?

(RS) : At the moment, HVAC is still the biggest part of the industry.  However, the adoption of this system still as a standalone implementation, therefore, we have not taken the advantage of the synergy between HVAC, security, control, mechanical, and electrical as the overall BAS solutions.

The costs associated with installing and managing a performance monitoring system have been admittedly dropping over the last several years. Is the same case happening in Indonesia as well?

(RS) : If I take a look at the trend, if I take a look at the cost structure of building automation system, hardware and software are the biggest component of it. And the maintenance are labors. The labors are dropping, as compared to hardware. Software is true, a small component, but the hardware and software are still a major component, and given the current economic situation where the exchange rate of the dollar strengthening, I have not seen this trend yet in Indonesia. I hope this will change, but however, at the current economic situation, perhaps it will not be decreasing or even increasing in the near future.

Lastly, what mainly needs to be improved by the policy makers in Indonesia to ensure a smarter, more integrated construction projects?

(RS) : I believe, incentive system from the government such as tax holiday, lower import tax, and development of skill labours in this area is still needed.  It makes the overall BAS solution to be more attractive which at the end will accelerate the adoption.



About Solidiance :

Solidiance is a dedicated growth strategy and B2B marketing consultancy firm focused on Asia. The company works exclusively with Fortune 500s to perform market opportunity analysis in order to support their Asia market growth expansion strategies and provide them with the required insights and the necessary roadmap to capture profitable market share in the region. Solidiance’s industry focus lays on their extensive experience in green technology, industrial applications, construction, clean tech and healthcare.

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Building Automation System Adoption in Indonesia | Solidiance | Rudy Setiawan

Rudy Setiawan talks about the adoption of Building Automation System (BAS) in Indonesia and the available opportunities in the market....